China to update AML rules with a focus on crypto transactions

Gulf Binance Secures Thai Digital Asset LicenseBinance, one of the world’s leading cryptocurrency exchanges, has secured a digital asset operator license in Thailand, paving the way for the launch of a new crypto exchange and broker. The license, granted by the Ministry of Finance of Thailand and overseen by the Southeast Asian country’s Securities and Exchange Commission (SEC), ensures that the upcoming platform will operate in compliance with regulatory requirements.Photo by Markus Winkler on UnsplashLicense awardThe license was awarded to Gulf Binance, a joint venture between Binance and Gulf Innova Co., Ltd., a subsidiary of Gulf Energy Development PCL. It marks a significant milestone in Binance’s expansion efforts. The partnership was initiated through a memorandum of understanding signed in January 2022, as both parties recognized the potential of establishing a digital asset exchange in Thailand.Richard Teng, the head of Asia, Europe, and MENA at Binance commented on the development: “By harnessing Binance’s expertise together with Gulf’s established local presence and network, Gulf Binance aims to showcase the full potential of blockchain technology to meet the needs of Thai users. Local users can expect access to a trusted and regulated service that prioritizes user security alongside compliance with local regulations.”Combined expertiseGulf Innova, as a prominent player in the Thai business landscape, brings extensive expertise and experience in the digital asset trading sector to the joint venture. The conglomerate, headed by billionaire Sarath Ratanavadi, operates in various industries, including energy production, telecommunications, and digital businesses.By combining Binance’s unparalleled growth and expertise in the digital asset space with Gulf’s established presence and knowledge in Thailand, the partnership aims to create a powerful synergy that drives innovation, fosters growth, and provides exceptional value to users in the digital asset ecosystem.Q4 launchThe new crypto exchange is expected to commence operations in the fourth quarter of 2023, although further details about the platform will be disclosed closer to the launch.Often criticized for its opaque structure, Binance is showing renewed commitment to transparency and regulatory compliance. As regulatory frameworks are put in place in varying jurisdictions, global crypto businesses are having to change corporate structures in order to meet these changing requirements. That’s evidenced by Binance’s Thai joint venture, its launch of a separate corporate entity in the form of Binance Japan and a similar move by crypto exchange BitMEX in Hong Kong.Thailand has emerged as a significant cryptocurrency hub in Southeast Asia, with its capital city, Bangkok, ranked 10th globally in The Crypto Readiness Index published by Recap, a cryptocurrency tax software company. Despite the ban on cryptocurrencies as a payment method, Thailand continues to flourish as a hub for trading and investment activities in the crypto space.That ban on cryptocurrency payments, implemented by the SEC in April 2022, aimed to safeguard the stability of the financial system and mitigate potential risks to the economy. The SEC identified price volatility, cyber theft, and personal data leakage as concerns associated with cryptocurrencies. However, the regulatory measures did not impede trading or investment activities, allowing the crypto industry to thrive.Chainalysis, a leading blockchain analysis company, ranked Thailand 8th in its Global Crypto Adoption Index for 2022, surpassing countries like Russia, China, Nigeria, Turkey, Argentina, and the UK. This recognition highlights Thailand’s progressive stance toward digital assets and its growing adoption within the country.

Illiquid Token Sinks OPNX’s $30 Million Hodlnaut BidThe interim judicial managers overseeing the restructuring process of troubled Singaporean crypto lender Hodlnaut have firmly opposed the takeover offer presented by OPNX, the Dubai-based crypto bankruptcy claims trading platform associated with the founders of the now-defunct hedge fund, Three Arrows Capital.Photo by Image Hunter on PexelsSpeculative token valueIn a report published on Tuesday, Bloomberg referred to a recent court filing in which the administrators of Hodlnaut had characterized OPNX’s $30 million bid in FLEX digital tokens as “illiquid” and bearing “speculative value.” Additionally, a significant portion of Hodlnaut Group’s creditors, representing 60% of the total debt, had also voiced their dissent towards the proposed OPNX deal.Hodlnaut, headquartered in Singapore with operations in Hong Kong, found itself among the casualties of the $1.5 trillion crypto market downturn last year. OPNX had expressed its interest in taking control of Hodlnaut last month.Among the concerns raised by managers were the absence of a cash injection or assets with readily available liquidity, such as Bitcoin or Ether. Furthermore, there was no clear timeline provided for the repayment of creditors’ debts, and the proposal lacked detailed information regarding payments, which are limited to just 30% of liabilities, according to the court-appointed supervisors of Hodlnaut’s restructuring.FLEX token offeringThe FLEX token, associated with the CoinFLEX exchange, whose founders Mark Lamb and Sudhu Arumugam launched OPNX earlier this year, is at the center of the proposal. Currently, it holds a market value of approximately $54.4 million. However, its trading volume remains low. Moreover, its unit value stands at $0.55, marking a substantial 95% decrease from a month ago when the offer was first submitted to the Singapore court, as per data from CoinGecko.The deal would have meant OPNX taking a 75% stake in the business. Previously, Hodlnaut’s founders Simon Lee and Zhu Juntao had put forward a proposal of a business sale rather than liquidating the company as the preferred option.Su Zhu and Kyle Davies, co-founders of Singapore’s Three Arrows Capital, played instrumental roles in the inception of OPNX, joining with the CoinFLEX founders in establishing the bankruptcy claims trading platform. Despite their initial contributions, it’s worth noting that Zhu has previously clarified that neither he nor Davies are involved in the day-to-day management of the exchange.Regulatory sanctionsIn recent developments, Zhu and Davies were sanctioned with a nine-year ban by the Monetary Authority of Singapore due to violations connected to their collapsed hedge fund firm, which operated out of Singapore. Furthermore, in August, authorities in Dubai levied fines against Zhu, Davies, Mark Lamb, OPNX CEO Leslie Lamb, and Arumugam for operating and promoting OPNX without the required local license.The rejection of OPNX’s bid by Hodlnaut’s bankruptcy administrators underscores the challenges implicated by illiquid tokens. The fate of Hodlnaut remains uncertain, pending further developments in the ongoing legal proceedings, and will depend upon its management’s efforts in finding a new buyer for the business.

Dubai approves crypto license for climate-friendly Web3 startupIn a move that shows some potential towards fostering sustainable innovation within the crypto space, Dubai’s Virtual Assets Regulatory Authority (VARA) has granted a conditional license to Web3 Innovations FZE, which trades as “AYA.”Licensed subject to fulfilling conditionsAYA is the Dubai-based subsidiary of Singapore-headquartered Web3 launchpad, incubator and advisory service, Enjinstarter. The license will enable AYA to offer management and investment services related to crypto assets. However, the license remains non-operational at the moment, as it has been awarded subject to the fulfillment of specific conditions outlined by VARA. The conditional license, awarded on Tuesday, has significance as it is indicative of a commitment from the Dubai authorities to supporting environmentally conscious initiatives in the Web3 ecosystem.The license awaits full compliance with VARA’s stipulated conditions and select localization requirements. Enjinstarter’s AYA platform will undergo further regulatory verification and approval once these prerequisites are met, as stated in the official announcement:“The license remains non-operational until the company fully satisfies all remaining conditions and select localization requirements defined by VARA.”Dubai ‘obvious choice’Back in October, Enjinstarter confirmed Dubai as the chosen location for its AYA platform. At the time, Enjinstarter MENA’s Managing Director, Vasseh Ahmed, described it as the “obvious choice.” Vasseh stated:”No other jurisdiction provides the regulatory clarity and sustainability focus we are looking for. Beyond that, there is a palpable sense of action here, specifically in terms of real-world asset regulation and climate action.”Prakash Somosundram, the co-founder and CEO of Enjinstarter and the AYA Foundation, expressed the company’s dedication to adhering to the regulatory process outlined by VARA.Photo by Qingbao Meng on UnsplashClimate-focused launchpadAYA stands out as a climate-focused launchpad, championing sustainability through initiatives such as reforestation, nature credits, mangrove conservation and sustainable agriculture. Beyond its role as a finance platform for green initiatives, AYA actively supports climate action projects, leveraging blockchain and Web3 infrastructure.As AYA works towards fulfilling VARA’s operational license requirements, the company has also unveiled a collaboration with The Storey Group based in the United Arab Emirates (UAE). This joint effort aims to plant mangroves in Dubai, reinforcing AYA’s commitment to combating climate change. Vasseh Ahmed, Managing Director of Enjinstarter MENA, emphasized the company’s mission:“We are looking to work with founders and projects that have a unique proposition within our key focus areas by helping them build their product narrative, raise capital, and launch their projects.”In a recent interview, Deepa Raja Carbon, Managing Director and Vice Chair at VARA, highlighted the regulator’s agile and collaborative approach. VARA remains committed to responding swiftly and effectively to market needs by engaging in conversations with industry leaders, innovators, peer regulators and legislators. Carbon emphasized the comprehensive and market-aligned guidelines crafted in collaboration with Dubai’s established entities, ensuring a unified framework for the evolving crypto landscape.Dubai’s move to grant a conditional crypto license to AYA appears to reflect a forward-thinking approach, aligning with global efforts to integrate sustainability into the rapidly evolving Web3 and crypto ecosystem.